Bitcoin-Related Company Sued for Not Providing Equipment

Accused of taking the money and folding

A company that sells "Bitcoin mining" equipment folded without delivering the equipment to its customers or refunding hundreds of thousands of dollars in Bitcoin advance payments, a purchaser claims in court.

Howard Loo sued TerraHash Inc., Amir Khan and Tarandeep Gill, in Santa Clara County Court, alleging fraud, unjust enrichment and breach of contract. He claims the company took in more than $600,000 in a single week this summer—$97,000 of it from him, in Bitcoins—then never delivered the goods.

Bitcoins are a virtual currency, which Loo describes as a digital form of gold, which can be transferred between people or merchants. Several businesses worldwide allow customers to pay for goods or services using Bitcoins. A single Bitcoin was selling for more than $1,000 this week.